Saint John is experiencing high growth due to $3 billion invested in energy projects such as Irving Oil. Thousands of workers are moving to a city that brags real estate half the price of their current homes-so they can sell their home, buy in Saint John, and have money left over. The oil pipeline is expected to bring thousands of workers, raising the housing prices (and value of your property) over time.
High Growth in Saint John
This is a plus for you, the investor-the properties you invest in today are affordable, likely to increase in value, and are located in a blossoming economy.
The Bright Future of Saint John and what this means for real estate investors
According to the article “Saint John named one of the world’s top 7 intelligent communities”, “the designation recognizes Saint John’s culture of innovation, particularly in the growth of ICT start-ups, the development of public services and the connections between the city’s schools – and in particular UNB Saint John – and the wider community.” Some of the accomplishments they are recognized for include a Sustainable Energy Management Program, Dalhousie Medicine New Brunswick, School District 8, and a start up culture that has produced companies such as Brovada, DealerMine, and Radian6.
Affordable Housing Prices
While Saint John’s economy grows, housing prices are still low. In fact, the average price for real estate is much lower in Saint John than in the rest of Canada because the high growth rate seen elsewhere has not previously been seen here.
In other areas of Canada, a high living standard paired with a high population density has lead to a decline in the housing market. This isn’t the case in Saint John, however, where less population meets lower standard of living, creating a more affordable lifestyle choice for families and a more profitable one for investors in the growing economy.
$3 Billion in Energy Projects
By 2020, Canada intends to be self-sufficient in oil. Since Saint John produces over 300,000 barrels of oil per day, it’s considered an important asset to Canada’s goal.
Plans for Irving Oil’s East-West pipeline will bring huge economic growth over the ten years until completion. Natural gas will add 260,000 jobs annually over the next 24 years, with thousands of jobs available soon due to Irving Oil. This has created a low unemployment rate of 5.9% as of 2010.
Oil can easily be shipped from Alberta to the Irving Oil refinery using the already existing pipeline from Portland to Montreal. This will create an estimated $8 billion in economic assets for Saint John.